All Posts in "George"

Do Visa’s (NYSE:V) Earnings Warrant Your Attention?

The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even companies that have no revenue, no profit, and a record of falling short, can manage to find investors. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. Loss-making companies are always racing against time to reach financial sustainability, so investors in these companies may be taking on more risk than they should.

In contrast to all that, many investors prefer to focus on companies like Visa (NYSE:V), which has not only revenues, but also profits. While this doesn’t necessarily speak to whether it’s undervalued, the profitability of the business is enough to warrant some appreciation – especially if its growing.

Visa’s Earnings Per Share Are Growing

If you believe that markets are even vaguely efficient, then over the long term you’d expect a company’s share price to follow its earnings per share (EPS) outcomes. So it makes sense that experienced investors pay close attention to company EPS when undertaking investment research. Impressively, Visa has grown EPS by 18% per year, compound, in the last three years. If the company can sustain that sort of growth, we’d expect shareholders to come away satisfied.

Top-line growth is a great indicator that growth is sustainable, and combined with a high earnings before interest and taxation (EBIT) margin, it’s a great way for a company to maintain a competitive advantage in the market. Visa maintained stable EBIT margins over the last year, all while growing revenue 10% to US$37b. That’s a real positive.

The chart below shows how the company’s bottom and top lines have progressed over time. To see the actual numbers, click on the chart.

earnings-and-revenue-history
NYSE:V Earnings and Revenue History March 23rd 2025

View our latest analysis for Visa

Are Visa Insiders Aligned With All Shareholders?

Owing to the size of Visa, we wouldn’t expect insiders to hold a significant proportion of the company. But we do take comfort from the fact that they are investors in the company. Indeed, they have a considerable amount of wealth invested in it, currently valued at US$254m. We note that this amounts to 0.04% of the company, which may be small owing to the sheer size of Visa but it’s still worth mentioning. So despite their percentage holding being low, company management still have plenty of reasons to deliver the best outcomes for investors.

Does Visa Deserve A Spot On Your Watchlist?

If you believe that share price follows earnings per share you should definitely be delving further into Visa’s strong EPS growth. This EPS growth rate is something the company should be proud of, and so it’s no surprise that insiders are holding on to a considerable chunk of shares. On the balance of its merits, solid EPS growth and company insiders who are aligned with the shareholders would indicate a business that is worthy of further research. What about risks? Every company has them, and we’ve spotted 1 warning sign for Visa you should know about.

Although Visa certainly looks good, it may appeal to more investors if insiders were buying up shares. If you like to see companies with more skin in the game, then check out this handpicked selection of companies that not only boast of strong growth but have strong insider backing.

George by — March 24, 2025 By George in Trending Now
Dolby Laboratories, Inc.’s (NYSE:DLB) Share Price Could Signal Some Risk

Dolby Laboratories, Inc.’s (NYSE:DLB) price-to-earnings (or “P/E”) ratio of 29.6x might make it look like a strong sell right now compared to the market in the United States, where around half of the companies have P/E ratios below 17x and even P/E’s below 10x are quite common. Although, it’s not wise to just take the P/E at face value as there may be an explanation why it’s so lofty.

With earnings growth that’s superior to most other companies of late, Dolby Laboratories has been doing relatively well. The P/E is probably high because investors think this strong earnings performance will continue. If not, then existing shareholders might be a little nervous about the viability of the share price.

Want the full picture on analyst estimates for the company? Then our free report on Dolby Laboratories will help you uncover what’s on the horizon.

What Are Growth Metrics Telling Us About The High P/E?

There’s an inherent assumption that a company should far outperform the market for P/E ratios like Dolby Laboratories’ to be considered reasonable.

If we review the last year of earnings growth, the company posted a terrific increase of 39%. As a result, it also grew EPS by 8.3% in total over the last three years. So we can start by confirming that the company has actually done a good job of growing earnings over that time.

Turning to the outlook, the next year should bring diminished returns, with earnings decreasing 8.3% as estimated by the two analysts watching the company. With the market predicted to deliver 14% growth , that’s a disappointing outcome.

In light of this, it’s alarming that Dolby Laboratories’ P/E sits above the majority of other companies. Apparently many investors in the company reject the analyst cohort’s pessimism and aren’t willing to let go of their stock at any price. Only the boldest would assume these prices are sustainable as these declining earnings are likely to weigh heavily on the share price eventually.

The Final Word

It’s argued the price-to-earnings ratio is an inferior measure of value within certain industries, but it can be a powerful business sentiment indicator.

We’ve established that Dolby Laboratories currently trades on a much higher than expected P/E for a company whose earnings are forecast to decline. Right now we are increasingly uncomfortable with the high P/E as the predicted future earnings are highly unlikely to support such positive sentiment for long. Unless these conditions improve markedly, it’s very challenging to accept these prices as being reasonable.

There are also other vital risk factors to consider and we’ve discovered 2 warning signs for Dolby Laboratories (1 is a bit unpleasant!) that you should be aware of before investing here.

Of course, you might also be able to find a better stock than Dolby Laboratories. So you may wish to see this free collection of other companies that have reasonable P/E ratios and have grown earnings strongly.

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George by — March 24, 2025 By George in Trending Now
The U.S. Stock Market Crashed 15 Times in the Last 100 Years. History Tells Us It’s Going to Crash Again — But Hold Fast.

Here’s what happens next, and what to do about it. I come today bearing good news and bad news, and I’ll give you the good news first: The S&P 500 (^GSPC 0.08%) is no longer in a “correction.” Since closing at its highest ever level of 6,144 on Feb. 19, this index tracking the performance of America’s 500 biggest companies tumbled quickly to close at 5,522 on March 13, 10.1% below its all-time high. It’s recovered since and, as of Friday’s market close, the S&P 500 is currently down only… 7.8% at a little under 5,668. So we’re out of correction territory, and perhaps ready to resume moving higher again. Or perhaps not.

The U.S. Stock Market: A short history of its crashes

Established back in March 1957, the S&P 500, per se, hasn’t been around to track the entire history of the U.S. stock market. But the Standard Statistics Company, predecessor to S&P Global (SPGI 0.10%), has, starting in 1923, when it began tracking the weekly stock performance of 233 U.S. companies. Over that roughly 100-year time period, these S&P indexes have recorded no fewer than 15 separate bear markets in which S&P companies lost 20% or more of their value. Some of these crashes were gigantic, such as the 86% decline that began in 1929, or the only slightly less terrible 60% decline that began in 1937. Other crashes were somewhat less serious. In 1956, an event that may have sparked the creation of the S&P 500 itself saw the stock market decline only 21.5%. Or consider the 1990 bear market, which might not even have been a technical bear market, depending on how far out you count your decimals, because the decline was only 19.9% top to bottom. Still, over time and on average, bear markets are plenty serious. Across 15 S&P bear markets in 100 years, we find investors suffer more than a 38% decline in the average stock market crash.

Why the February S&P 500 correction might be the start of something worse

That number — 38% — stuck out to me recently when considering a report from the St. Louis Fed, which crunched U.S. Bureau of Economic Analysis data to prepare a surprisingly clear graph of what “normal” corporate profit margins look like in the U.S. Basically, they look like this:
Chart shows historical average profit margins in the US.
Image source: FRED (with red lines added), via John Mauldin’s Thoughts from the Frontline newsletter. Which is to say that, for the past 75 years or so, from 1936 through 2011 — or practically the entire history of the U.S. stock market, except only the time of the Great Depression — U.S. companies have averaged somewhere between 3.8% and 7.2% profit margins on their revenues. Something changed in 2012, however, and then changed more dramatically when COVID-19 arrived in 2020, and pushed U.S. corporate profit margins far beyond their “normal” range. History suggests this kind of a leap higher may not be sustainable. And here’s what worries me: Averaging profit margins of 9% today, a “reversion to the mean” to just 7.2% profit margin — the upper bound of the historical range — would imply a 20% drop in absolute corporate profits from current levels.

What happens when profit margins shrink?

Now here’s why I worry such a reversion to the mean could spark a bigger stock market collapse: When earnings decline because of smaller profit margins, the “multiples” that investors are willing to pay to own those earnings tend to decline as well. And this can hit stock markets with a double whammy, as not only do earnings fall, but the stock price that investors are willing to pay times those earnings also falls. How does this work? Consider a hypothetical company “Capitalism ‘R’ Us” that earns $1 per share. Right now, investors are paying about 28 times earnings for the average S&P stock. 28 x $1 = a $28 stock price on Capitalism. But now assume that, because of a shrinking profit margin, Capitalism is only able to earn $0.80 per share. Alarmed by this development, investors cut the multiple they’re willing to pay for Capitalism’s stock by, say, 25%, to 21x earnings. 21 x $0.80 = Capitalism is now worth only $16.8. Abracadabra, Capitalism’s stock price just dropped 40%, which happens to be very close to what the data show us is the average stock market value drop in a bear market over the last 100 years.

A little good news for optimists

Now, it’s not all bad news. Despite crashing 15 times in 100 years, the S&P 500 has still averaged 10% to 11% annual growth including dividends over this same period. History gives us no reason to think that will change, so there’s still hope here for long term investors. We just may need to cross one more yawning chasm first, before growth resumes. So, how should you prepare for it? Refocus your portfolio on individual value stocks that you know aren’t overpriced regardless of whether “the stock market” as a whole is overpriced. Avoid leverage. Avoid debt. Avoid risky stocks, meme stocks, and crypto coins that don’t offer clear value. And when the crash comes, understand that you may not know when it will end, but you do know that it will end. Hold on tight. Stay invested, and keep investing — in the right kinds of stocks.
George by — March 24, 2025 By George in Market Watch
Japanese Market Slightly Higher

(RTTNews) – The Japanese stock market is trading slightly higher on Monday, recouping some of the losses in the previous three sessions, following the broadly positive cues from Wall Street on Friday. The Nikkei 225 is moving above the 37,700 level, with gains is index heavyweights partially offset by weakness in financial stocks. The benchmark Nikkei 225 Index is up 46.76 points or 0.12 percent at 37,723.82, after touching a high of 37,841.68 earlier. Japanese shares ended modestly lower on Friday. Market heavyweight SoftBank Group is gaining more than 3 percent and Uniqlo operator Fast Retailing is edging up 0.5 percent. Among automakers, Honda is edging up 0.3 percent and Toyota is also edging up 0.5 percent. In the tech space, Advantest is gaining almost 1 percent, while Screen Holdings is declining more than 2 percent and Tokyo Electron is edging down 0.5 percent. In the banking sector, Mitsubishi UFJ Financial is losing almost 1 percent, while Sumitomo Mitsui Financial and Mizuho Financial are declining more than 1 percent each. The major exporters are mostly lower. Panasonic is losing more than 1 percent, while Sony and Canon are edging down 0.3 percent each. Mitsubishi Electric is edging up 0.5 percent. Among the other major gainers, DeNA is gaining more than 5 percent and CyberAgent is adding almost 3 percent. Conversely, there are no other major losers. In the currency market, the U.S. dollar is trading in the higher 149 yen-range on Monday. On Wall Street, stocks showed a significant recovery over the course of the trading day on Friday after moving sharply lower early in the session. The major averages climbed well off their worst levels of the day and into positive territory. The tech-heavy Nasdaq saw a notable advance going into the close, ending the day up 92.43 points or 0.5 percent at 17,784.05 after tumbling by as much as 1.2 percent in early trading. The Dow and the S&P 500 posted more modest gains. The Dow inched up 32.03 points or 0.1 percent to 41,985.35 and the S&P 500 crept up 4.67 points or 0.1 percent to 5,667.56. Meanwhile, the major European markets all moved to the downside on the day. While the German DAX Index fell by 0.5 percent, the French CAC 40 Index and the U.K.’s FTSE 100 Index both slid by 0.6 percent. Crude oil prices bounced higher on Friday on geopolitical tensions after new U.S. sanctions against a Chinese refinery that purchased Iranian oil. West Texas Intermediate crude for May delivery climbed $0.23 or 0.3 percent to $68.30 a barrel.
George by — March 24, 2025 By George in Market Watch
Segway recalls 220,000 of its scooters due to a fall hazard that has resulted in 20 injuries

Segway is recalling about 220,000 of its scooters sold across the U.S. due to a fall hazard that has resulted in user injuries ranging from bruises to broken bones. According to a notice published by the U.S. Consumer Product Safety Commission, the folding mechanism in Segway’s Ninebot Max G30P and Max G30LP KickScooters can fail during use — causing the handlebars or stem of the scooters to fold. That can result in serious injuries, the Commission warns. Thursday’s recall notice notes that Segway has received 68 reports of folding mechanism failures — with 20 injuries that include abrasions, bruises, lacerations and broken bones. Consumers in possession of these now-recalled scooters are urged to stop using them immediately and contact Segway to request a free maintenance kit. This kit includes tools and step-by-step instructions to inspect and adjust the scooters’ locking mechanism as needed, Segway says. “Over time, depending on riding conditions, the folding mechanism may require periodic checks and tightening,” California-based Segway writes on its website. “No returns or replacements are involved.” According to the CPSC, the Segway scooters involved in this recall were manufactured in China and Malaysia and sold at retailers across the U.S. — like Best Buy, Costco, Walmart, Target and Sam’s Club, as well as online at Segway.com and Amazon.com, between January 2020 and February 2025. Sale prices ranged from $600 to $1,000.
George by — March 24, 2025 By George in Business News
National Grid confirms Heathrow never lost access to power

The chief executive of the National Grid has confirmed power was available to keep Heathrow open during Friday’s shutdown. In an interview with the Financial Times, John Pettigrew said the fire that knocked out a substation was a “unique event”, but that two other substations remained operational and capable of powering the airport in west London. Heathrow chief executive Thomas Woldbye had said on Friday that the shutdown was not caused by a lack of power, but was due to the time it took to switch from the damaged substation to the other two. The airport is under pressure from airlines to explain why flights were suspended for 18 hours after the fire in the early hours of Friday morning. The fire started in a transformer within the electrical substation in Hayes north of Heathrow around midnight. The airport has emergency back-up power supplies, which use diesel generators and batteries, but these only keep crucial safety systems running, such as landing equipment and runway lights. A separate biomass power generator also provides heat and electricity to Terminal Two. However, the National Grid is the main source of power for Heathrow. Mr Pettigrew told the Financial Times said he couldn’t remember a transformer failing to such an extent in his 30-year career in the industry. “Losing a substation is a unique event but there were two others available. That is a level of resilience.” A Heathrow spokeswoman said that Mr Pettigrew’s comments “confirms that this was an unprecedented incident and that it would not have been possible for Heathrow to operate uninterrupted. “Hundreds of critical systems across the airport were required to be safely powered down and then safely and systematically rebooted,” she said. “Given Heathrow’s size and operational complexity, safely restarting operations after a disruption of this magnitude was a significant challenge.” On Friday, Heathrow managers decided to close the airport on the grounds of safety while they switched to the alternative National Grid supplies. Mr Woldbye told the BBC the delay to reopening was due to the need to “reallocate” the power supply – “closing down and restarting systems which takes a long time.” He said there were a “number of systems we have to shut down and then bring them back up and ensure they are safe.” “It’s fuelling systems, its bridges, it’s escalators, all of these systems have to be brought back up, tested to ensure they are safe.” He added that there were risks “of certain sizes we cannot guard ourselves against 100% and this is one of them.” However the duration of the shutdown has infuriated airlines. Willie Walsh, the former British Airways boss and head of the airline organisation IATA said it was a “clear planning failure by the airport” and the systems and procedures for handling power failures are now under the spotlight. The government’s ordered a six-week investigation into the shutdown, led by the National Energy System Operator. Mr Woldbye, who attracted criticism for claiming the airport had “come back quite fast”, said he was “happy” to answer to the prime minister.
George by — March 24, 2025 By George in Business News
Rich people live by these 5 rules, self-made millionaire says: ‘It’s not just about cost’

There’s no single path rich people follow to obtain their wealth.

Some are born with generational wealth that gives them a head start, while others work their way up through grit, determination and well-timed career decisions. Luck may also be a factor.

But there are a few common habits among wealthy people, self-made millionaire, author and TV host Ramit Sethi wrote in a recent newsletter.

“It’s time to stop worshipping rich people — and start copying what they actually do,” he wrote.

Here are five rules Sethi said rich people live by and how you can use them to grow your own wealth.

1. Know the ins and outs of your finances

If you know how much money you make in a year, you’re already a step ahead of many of the people Sethi has spoken to over the two decades he’s been helping people with money.

“You have to know your numbers,” Sethi recently told CNBC Make It. “Shockingly, 50% of the couples I speak to do not know their own household income. 90% of people in debt do not know how much debt they owe.”

It’s easy to track and obsess over ”$3 questions” like the price of eggs or a gallon of gas, Sethi said. But those factors are probably not making the difference between being able to retire and working full-time well into your golden years. Instead, focus on seven key questions, he wrote:

  1. How much money do I make?
  2. How much debt do I have and when will I pay it off?
  3. What percent of my income goes to savings?
  4. What percent of my income gets invested?
  5. How much of my income do I spend on housing?
  6. What do I want to spend more on and less on?
  7. What are my money beliefs?

Of course, knowing the answer to these questions and not making any adjustments won’t get you far. But understanding your own financial position is key to figuring out what your next steps are.

“Rich people who are savvy with money can tell you how much they’ll have next month, next year, and even five years from now,” Sethi wrote.

2. Have systems in place for making money decisions

Don’t rely solely on willpower to make smart money decisions. “Willpower is great … until your kid throws a tantrum, you catch the flu, or your entire mood tanks because last night’s ‘Bachelor’ episode sucked,” Sethi wrote.

Instead of setting a budget and committing yourself to sticking to it, try putting systems in place to handle your money automatically, Sethi said. Your savings, investments and bill payments can all be automated, so you don’t even have to think about things like whether you can afford a vacation this year.

You can do this by setting up payroll deductions for your 401(k) or automatic bank transfers to your savings or brokerage accounts. Additionally, you can set money rules for yourself, like deciding that a certain percentage of every cash windfall gets invested and the rest can be used for fun.

“Rich people don’t gamble their financial success on how motivated they feel today,” Sethi wrote. “They build airtight systems that handle their money automatically.”

3. Have a plan before you need one

For better or worse, life is full of unexpected surprises. But what often sets rich people apart is that they have a plan for the future, Sethi said. They not only have a healthy emergency fund, but also have a solid understanding of what they want their lives to look like.

“Most people don’t know how much they should be saving or investing,” Sethi wrote. “They just pluck a random number out of the air and then feel guilty for the next 45 years.”

Figure out what exactly you want to be able to do with your money, whether that’s quitting work entirely by the time you’re 60 or starting your own business when you leave your 9-to-5.

“Once you have that decided, you need to create a timeline and make a plan,” Sethi wrote. “Build a system so your back is never against the wall.”

4. Live by the 80/20 principle

″[Rich people] live by the 80/20 principle: 80% of your results come from 20% of your effort,” Sethi wrote. In a business setting, this may mean that 80% of profits come from 20% of customers.

But on a personal level, it means instead of worrying about $3 questions, like the whether you should buy a latte or make coffee at home, focus on ”$30,000 questions,” like whether you can negotiate a raise or significantly lower your housing costs.

“These questions are worth tens of thousands of dollars and yet we remain in the weeds and play small by asking the $3 questions,” Sethi previously told CNBC Make It.

5. Focus on value over cost

Sure, you could save yourself some money by always going for the cheapest option. But saving a few dollars may not be worth an inferior product or experience.

“Rich people who are savvy with money don’t just care about costs — they care about value,” Sethi wrote.

He gave the example of choosing to pay for a personal trainer rather than trying to teach himself through free resources like YouTube videos. “By paying someone, I saved myself endless frustration — and gained something far more precious: TIME,” he wrote.

Sethi emphasized that this rule should be applied to the things that matter the most to you. Choose to invest in a few key areas rather than splurging on things that aren’t as important to you.

“The point of money isn’t to hoard it,” he wrote. “The point of money is to use it to solve problems and enjoy your life.”

George by — March 23, 2025 By George in World News
‘The Big Short’ investor who predicted the 2008 crash warns the market is ‘underestimating’ the economic impact of DOGE’s mass spending cuts

Markets have not yet factored in the impact of mass cuts in government spending, ‘The Big Short’ investor Danny Moses said. He told Fortune the Department of Government Efficiency’s cuts have jeopardized private contractors, small businesses, and the labor market. “It’s not as simple as just, ‘We think there’s fraud, let’s cut waste, let’s cut expenses,’” he said. Investor Danny Moses, best known for his oracular bet against mortgage-backed debt before the 2008 stock market crash, is warning of another economic red flag. The founder of Moses Ventures made famous by the book-turned-movie “The Big Short” cautioned the market has not yet accounted for the negative economic impact of the mass cuts to government jobs carried out by the Elon Musk-championed Department of Government Efficiency. “I think we are underestimating the impact to the economy of the cuts we’re making at the federal government, and what that might mean [for] the knock-on effects into the economy,” Moses said in a CNBC “Power Lunch” interview on Thursday. “We’re hurting the revenue side of the equation.” “I think we are being overly optimistic [as to] how this is going to play out,” he added. President Donald Trump’s administration has fired more than 24,000 federal workers, according to court documents, many of whom expect difficulty finding private sector jobs due to the specificity of their expertise. An additional 75,000 employees took a deferred resignation opportunity, which allowed them to receive pay and benefits through September. DOGE’s Wall of Receipts claims to have eliminated $115 billion in government spending—though the veracity of its alleged savings are under fire from experts. The administration’s whipsaw on tariffs has sown further uncertainty in the markets, leading companies to reassess their plans. Meanwhile, Federal Reserve chair Jerome Powell has left interest rates untouched while the policy plays out.

An ‘unvirtuous cycle’

Moses argued investors are already beginning to see disruptions in consumer confidence—which last month saw its steepest drop in four years—and will continue to hear similar trends in upcoming earnings calls. These slowdowns have yet to be priced into the market, he said. “It’s not as simple as just, ‘We think there’s fraud, let’s cut waste, let’s cut expenses,’” Moses told Fortune. “And it’s not just about the federal workers, and it’s not just about the expenses out of those programs. It’s about the contracts with the private sector.” The tell-tale signs of the weakening economy will be seen in small businesses and “private contractors that are doing legitimate work services that are now being forced to make decisions on their business,” Moses said. The government spent about $759 billion on contracts in fiscal 2023, an increase of about $33 billion from the year before, with about $171.5 billion going to small businesses, according to the U.S. Government Accountability Office. Musk’s own companies receive at least $20 billion in government contracts. DOGE’s mass cuts have already begun to jeopardize major contracts. Accenture chief executive Julie Spellman Sweet told investors Thursday its Federal Services business, representing 8% of global revenue, lost U.S. government contracts as part of DOGE’s review. The consultancy’s share price tumbled 7.3% following the announcement. The elimination of both federal jobs and contracts creates what Moses called an “unvirtuous cycle.” As more fired federal workers look for private sector jobs, they may find fewer opportunities because of shrinking revenue streams in government contracts.

Federal workers’ luck in the job market

Indeed, beyond the purgatory of government contracts, the economy will also have to contend with tens of thousands of federal workers reentering the labor market. Many of those former government employees will encounter an environment that is stable, but has wildly different prospects based on the skillsets of those newly unemployed, Cory Stahle, an economist for Indeed’s Hiring Lab, told Fortune. “Can the labor market absorb these workers?” Stahle said. “We’re not quite sure if it can.” Healthcare jobs are currently abundant—good news for about 16% of the federal workforce in health-related fields, according to the Pew Research Center—but many other white-collar jobs, particularly in tech and data science, are scarce. Because many fired federal employees are educated, they may be looking for traditional knowledge worker jobs that don’t exist at the moment, Stahle said. One of the reasons the markets may not have yet factored in the impact of the firings is the lag in government data. While the Bureau of Labor Statistics reported about 10,000 fewer federal government jobs in February, the survey period for the report likely ended before many of the firings were carried out. “Employers seem to be really frozen, by the uncertainty around what’s going to happen around tariffs, what’s going to happen with labor supply, immigration, then obviously, what’s going to happen with these federal workers,” Stahle said. “There’s a lot of uncertainty that’s playing in right now that we’re not fully able to quantify.” Should a substantive number of federal workers fail to find new jobs, spending will likely slow, a not-insignificant hit to a U.S. economy made up nearly 70% of consumer spending, Callie Cox, chief market strategist at Ritholtz Wealth Management, wrote in a February blog post. “The economy is indisputably made up of people and their wallets,” she said. “Disrupt our spending, and growth will sputter, no matter how worthy you think the cause of the disruption is.”
George by — March 23, 2025 By George in World News
NIKE (NYSE:NKE) Completes US$11.8 Billion Buyback as Shares Remain Flat

NIKE recently announced an update to its ongoing share buyback program, having repurchased 6.5 million shares at a cost of $499 million, reinforcing its commitment to shareholder value. Despite this positive signal, the company’s stock price remained flat last week, moving just 1% amid a complex backdrop. The broader market showed signs of resilience with the S&P 500 on track to break a four-week losing streak, but Nike faced specific challenges, with news of potential sales impacts from its turnaround plan and tariff concerns contributing to the cautious investor sentiment surrounding the stock.

NYSE:NKE Revenue & Expenses Breakdown as at Mar 2025

NYSE:NKE Revenue & Expenses Breakdown as at Mar 2025

The past five years have seen NIKE’s total shareholder return fall by 9.50%. A notable challenge during this period has been inventory management issues impacting gross margins and contributing to revenue pressure. Another factor influencing long-term performance is the company’s attempt to transition to a full-price model, aiming to improve gross margins by reducing reliance on promotions and markdowns.

Despite a strategic refocus on sports partnerships with the NBA and NFL to drive demand, execution challenges, such as missteps in digital engagement, have affected brand perception and sales margins. These challenges were compounded by underperformance compared to the broader US market, with NIKE lagging behind, particularly in regions like Greater China. Additionally, while NIKE has maintained regular dividends, as seen with a US$0.40 declaration in February 2025, the company’s overall performance has not kept pace with industry counterparts, as shown by its negative earnings growth over the past year.

George by — March 23, 2025 By George in Equities
Virgin Galactic Holdings (NYSE:SPCE) Reports Improved Earnings With Sales Hitting US$7 Million

Virgin Galactic Holdings recently announced its earnings, reporting improved financial results with sales of USD 7 million and a reduced net loss of USD 347 million compared to the previous year. This announcement likely influenced the company’s stock price, which rose 27% over the past week. The broader market context also shows major indexes like the S&P 500 and Nasdaq ending their losing streaks, providing a favorable environment for stocks. Despite broader economic concerns and varied performances in other sectors, Virgin Galactic’s improved financials and the positive momentum from major indexes likely contributed to its significant price increase.

NYSE:SPCE Earnings Per Share Growth as at Mar 2025

NYSE:SPCE Earnings Per Share Growth as at Mar 2025

Over the past year, Virgin Galactic Holdings (NYSE:SPCE) experienced a significant decline in total shareholder returns, falling by 85.14%. This substantial downturn is in contrast to the broader market and the Aerospace & Defense industry, which both saw positive returns of 7.8% and 17.6%, respectively, during the same period. Key factors influencing this performance include the company’s high valuation, with a Price-To-Sales Ratio significantly above the industry average, possibly deterring some investors.

Several noteworthy events unfolded over the year. Virgin Galactic announced a substantial equity offering of US$403.8 million on November 4, 2024, which could have impacted perceived dilution concerns. The company also initiated business expansions, such as opening a new manufacturing facility in Arizona for Delta-class spaceships, announced on July 10, 2024. Moreover, strategic alliances were formed, such as the partnership with Redwire Corporation on January 30, 2025, which may eventually enhance operational capacities but may have yet to favorably change investor sentiment over the period.

George by — March 23, 2025 By George in Equities
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